REG - Pantheon Resources - Webinar and update

Pantheon ResourcesAnnouncement

10/04/2024 17:00

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RNS Number : 0902K  Pantheon Resources PLC  10 April 2024

10 April 2024

Pantheon Resources plc

Webinar and update

 

Pantheon Resources plc (AIM: PANR) ("Pantheon" or "the Company"), the oil and
gas company with a 100% working interest in the Kodiak and Ahpun projects,
covered by 193,000 acres of leases with an additional c. 66,000 acres to be
awarded following successful bids in the December 2023 lease sales, all in
close proximity to pipeline and transportation infrastructure
on Alaska's North Slope, confirms that as previously announced, a webinar
presentation and Q&A will be held at 5.00pm British Summer
Time today and is open to all shareholders and other interested parties
(the "Webinar"). Registration details can be accessed at:
https://www.investormeetcompany.com/pantheon-resources-plc/register-investor
(https://www.investormeetcompany.com/pantheon-resources-plc/register-investor)

A copy of the PowerPoint presentation to be delivered during the Webinar and a
recording of the webinar will be uploaded to the Company's website
at https://www.pantheonresources.com/ (https://www.pantheonresources.com/)
 once available.

About the Webinar

In this Webinar, the management team will provide further context on the newly
released Independent Expert Report ("IER") on the Kodiak Field by Netherland,
Sewell & Associates ("NSAI"), Pantheon's newly released management
resource estimate on the new leases for the Eastern extension of the Ahpun
field, modelled individual well economics, together with a detailed Q&A
session. The presentation will address the following, including certain
updated information:

1.    NSAI Report Summary and Appraisal Upside

2.    Additional IERs presently underway on Ahpun

3.    Modelled Individual well economics and commerciality

4.    Pantheon management resource estimates - Ahpun project - Eastern
Topsets

5.    Discussion on opportunity for non-equity dilutive funding backed by
potential gas sales to in-state consumers through the AGDC proposed gas
pipeline

6.    Discussion on potential Helium opportunity

7.    Q&A

Current Resource Base for Pantheon Leases in ANS (based upon 100% working
interest)

 

 Source                                                  Classification  Best Estimate    Best Estimate    Total Marketable Liquids (million bbls)  Best Estimate

                                                                         Oil              NGL                                                       Gas (bcf)

                                                                         (million bbls)   (million bbls)
 Kodiak (NSAI - April 24)                                Contingent      425.8            782.1            1,207.9                                  5,396.3
 Ahpun - Alkaid                                          Contingent      76.5             -                76.5                                     N/A

 (LKA - Jan 20)
 Ahpun - Western Topsets (management estimate, July 21)  Contingent      404              -                404                                      2,000
 Ahpun - Eastern Topsets                                 Prospective     510              99               609                                      3,300

 (management estimate - see below)
 Other Zones, SFS, UBFF, Kuparuk                         N/A             N/A              N/A              N/A                                      N/A

 

 

NSAI Contingent Resource Estimates - Kodiak Field

Following receipt of NSAI's Independent Expert's Report announced on 9 April
2024, the current best estimate of contingent recoverable marketable liquids
stands at 1,207.9 million barrels ("mmbbls") and 5,396.3 billion cubic feet
("bcf") of natural gas for the Kodiak Field. This represents a 25% increase
compared to the 2023 assessment prior to the inclusion of the new leases on
which Pantheon was the successful bidder in December 2023. The high estimate
shows a better than 40% increase on the previous report, reflecting the
potential for substantial improvement in reservoir properties at shallower
depths in the new leases.

Lee Keeling & Associates ("LKA") Reserves Estimates - Ahpun Field, Alkaid
Horizon

LKA has been contracted to provide an updated Independent Expert Report
("IER") on the Alkaid horizon of the Ahpun Field. This work is presently
underway and will be released once completed.

 

Cawley Gillespie & Associates ("CGA") Contingent Resource Estimates -
Ahpun Field, Western Topsets

CGA has been contracted to provide an IER on the Western Topsets in the Ahpun
Field. This work is presently underway and will be released once completed.

Management Resource estimate - Ahpun Eastern Topsets

Approximately 23,000 of the c.66,000 acres successfully bid for in December
2023(1) cover the Eastern Topsets of the Ahpun project. Management has
completed an internal resource assessment and, in a P50 case, estimates a
Prospective Resource (gross) of 609 million barrels of marketable liquids, as
summarised in the table below. The Company intends to drill an
exploration/appraisal well in the Ahpun Eastern Topset, once funded, to
further refine the resource estimate.

1 The Company has paid an initial 20% deposit to the State of Alaska with the
remainder payable on official award of the new leases which is anticipated
this quarter.

Ahpun Eastern Topsets - Management resource estimate - 100% working
Interest(1)

 Resource Category   Oil              NGLs             Total Marketable Liquids

                     (million bbls)   (million bbls)   (million bbls)
 Low Estimate (1U)   383              73               459
 Best Estimate (2U)  510              99               609
 High Estimate (3U)  687              134              818

 

I.      Gross resources - prior to deduction of c. [13.5% to 17.7%]
royalties.

II.     Pantheon will have 100% working interest in all leases once award
complete.

III.    Management resource estimates have been prepared in accordance with
definitions and guidelines set forth in the 2018 Petroleum Resource Management
System (PRMS) approved by the Society of Petroleum Engineers (SPE).

IV.    Estimated 70% Geological probability of success.

SLB Modelling Update - Ahpun Western Topsets Individual Well Type Curve

SLB has continued its dynamic modelling of Pantheon's reservoirs and provided
a single well model based on the rock properties logged and sampled (whole
core) at the Pipeline State-1 well location. This results in per well
recoveries of 3.7 million barrels of marketable liquids and 8 bcf of natural
gas.

Illustrative Economic Modelling - Ahpun Western Topsets Individual Well
Company Assessment

SLB's results are consistent with the Company's own modelling, which estimates
3.5 mmbbls and 8 bcf expected recoveries per well, and yields the following
economic results (on a pre-Federal Income Tax basis):

Illustrative examples - Per well modelled economics

 Ahpun Topsets EUR 3.5 mmbbls
 ANS price per bbl  NPV @ 10%      $000's       IRR
 $60                $43,872                     >100%
 $70                $57,052                     >100%
 $80                $70,232                     >100%
 $90                $83,412                     >100%

 

 Kodiak - Theta West EUR 3.65 mmbbls                                               Kodiak Updip EUR 4.56 mmbbls
 ANS price per bbl  NPV @ 10%      $000's                        IRR               ANS price per bbl  NPV @ 10%      $000's                        IRR
 $60                36,398                                       >100%             $60                48,811                                       >100%
 $70                  68,226                                     >100%             $70                83,328                                       >100%
 $80                 100,055                                     >100%             $80                117,845                                      >100%
 $90                131,884                                      >100%             $90                 152,361                                     >100%

 

Principal assumptions and management estimates:

•     ANS prices have been discounted by 10%.

•     Wells modelled at 3.5 million bbl marketable liquids EUR in Ahpun
Topsets, 3.65 million bbl in Kodiak at Theta West-1 location and 4.56 million
bbl in updip Kodiak locations.

•     Assumed zero revenues for natural gas or helium.

•     Transportation costs - TAPS tariff and shipping to US West Coast
estimated at $7.50/bbl.

•     1 injection well modelled for every 3 production wells.

•     Production wells costed at $17 million and injection wells costed
at $15 million per well.

•     Well pads and production facilities estimated at $50 million for
20 well pad.

•     State profits tax at 35% after payout (4% minimum tax rate prior
to payout). Pre federal taxes.

•     Estimates based upon information available at the date of
announcement - actual outcomes may differ.

 

 

Further information:

 

Pantheon Resources plc

Jay Cheatham, CEO

David Hobbs, Executive
Chairman
+44 20 7484 5361

Justin Hondris, Director, Finance and Corporate Development

 

Canaccord Genuity Limited (Nominated Adviser and broker)

Henry Fitzgerald-O'Connor, Ana
Ercegovic
                                +44 20 7523
8000

 

BlytheRay

Tim Blythe, Megan Ray, Matthew
Bowld
+44 20 7138 3204

 

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies
- June 2009, the information contained in this announcement has been reviewed
and signed off by David Hobbs, a qualified Petroleum Engineer and a member of
the Society of Petroleum Engineers, who has nearly 40 years' relevant
experience within the sector.

 

The information contained within this Announcement is deemed by Pantheon
Resources PLC to constitute inside information as stipulated under the Market
Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

 

 

Notes to Editors

Pantheon Resources plc is an AIM listed Oil & Gas company focused on
developing the Ahpun and Kodiak fields located on state land on the Alaska
North Slope ("ANS"), onshore USA, where it has a 100% working interest in c.
193,000 acres. In December 2023, Pantheon was the successful bidder for an
additional 66,240 acres with very significant resource potential, contiguous
to the Ahpun and Kodiak projects. Following the issue of the new leases,
which are expected to be formally awarded in summer 2024 upon payment of the
balance of the application monies, the Company will have a 100% working
interest in c. 259,000 acres. Certified contingent resources attributable to
these projects are currently around 1.3 billion barrels of marketable liquids,
located adjacent to Alaska's Trans Alaska Pipeline System ("TAPS") with
additional IERs expected within the next month.

Pantheon's stated objective is to demonstrate sustainable market recognition
of a value of $5-$10/bbl of recoverable resources by end 2028. This is based
on targeting Final Investment Decision ("FID") on the Ahpun field by the end
of 2025, subject to regulatory approvals, building production to at least
20,000 barrels per day of marketable liquids into the TAPS main oil line, and
applying the resultant cashflows to support the FID on the Kodiak field by
the end of 2028.

A major differentiator to other ANS projects is the close proximity to
existing roads and pipelines which offers a significant competitive advantage
to Pantheon, allowing for materially lower infrastructure costs and the
ability to support the development with a significantly lower pre-cashflow
funding requirement than is typical in Alaska.

The Company's project portfolio has been endorsed by world renowned
experts. Netherland, Sewell & Associates ("NSAI") estimate a 2C
contingent recoverable resource in the Kodiak project that total 1,208
million barrels of marketable liquids and 5,396 billion cubic feet of natural
gas. Cawley Gillespie & Associates and Lee Keeling &
Associates are working on estimates for the Ahpun Field Topset and Alkaid
horizons.

 

Glossary

Bbls: barrels

 

Bcf: Billion cubic feet

 

Contingent Resource: Those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known accumulations by application of
development projects, but which are not currently considered to be
commercially recoverable owing to one or more contingencies.

 

NGLs: Natural gas liquids (NGL) are components of natural gas that are
separated from the gas state in the form of liquids.

 

Prospective Resources: Those quantities of petroleum which are estimated, on a
given date, to be potentially recoverable from undiscovered accumulations.

 

 

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